V DEFINITION OF TERMS

 ˜ROSS PAY- total earnings of an employee for a

payroll period before taxes and other deductions
which comprise of salaries, wages, commissions,
bonuses, cost of living allowance and fringe
benefits.
V The SOCIAL SECURITY SYSTEM
(SSS) administers two programs,
namely: the Social Security Program
and the Employee's Compensation
Program.
V SSS benefits provides for a replacement of
income to members and covers the following:
 Sickness benefits
 Maternity benefits
 Disability benefits
 Retirement benefits
 Death benefits
V The Employees' Compensation (EC) Program aims
to assist employees who suffer work related
sickness or injury resulting in disability or death and
EC may be enjoyed simultaneously with benefits
under the SSS program. The benefits under this
program are as follows:
 Medical services and supplies
 Rehabilitation services
 Income cash benefits for temporary total disability or
sickness, permanent total or partial disability, and death.
V The National Health Insurance Program,
formerly known as Medicare, is a health
insurance program for SSS members and
their dependents who may find themselves in
need of financial assistance when they get
hospitalized.
 The Philippine Health Insurance Corporation or
Philhealth is the mandated administrator of the
Medicare program.
V The Pag-IBI˜ Fund offers its members the following benefits:
 Savings
 Short Term Loans
 Access to Housing Programs
With the signing or RA No. 9679, membership to the Fund shall be
mandatory for the following:
- All employees, workers, professionals, officers and companies who
are compulsory covered by the SSS & ˜SIS;
- Uniformed members of the AFP, the Bureau of Fire Protection, the
Bureau of Jail Management and Penology, and the Philippine
National Police;
- Overseas Filipino Workers (OFWs)
- Filipinos employed by foreign-based employers, whether deployed
locally or abroad
V Contributions- monthly contributions are based on
the compensation of the member and payable
under the three programs:
 Social Security Benefits Ȃ payable by both
employer and employee
 Philhealth Benefits Ȃ payable by both employer
and employee in equal shares
 Employees Compensation Benefits (EC) Ȃ payable
only by the employer
V Pag-IBI˜ Fund Contributions
 Employees earning P1,500 and below per month
Ȃ 1% of monthly compensation
 Employees earning over P1,500 per month
Ȃ 2% of monthly compensation
 Employers Ȃ 2% of the monthly compensation of
the contributing employee
V Withholding taxes Ȃ
  Every employer is required by the Bureau of Internal
Revenue to withhold taxes from the salaries or wages
of their employees.
  Withholding taxes are applied on gross pay after
deducting the mandatory employee contributions.
  On or before the end of the calendar year but prior to
payment of the compensation for the last payroll
period, the employer shall determine the tax due from
each employee on taxable compensation income for
the entire taxable year in accordance with the rates
prescribed ranging from 5% to 32%.
V Net Pay Ȃ gross pay less the payroll
deductions (SSS, Philhealth, Pag-IBI˜
contributions, withholding taxes and other
deductions) equals net pay.
V Net Pay or take-home pay is the amount to
be paid to the employee.
V The employer is mandated by law to collect
contributions of members through payroll
deductions and is required to remit the
employeesǯ contributions along with his
counterpart contributions.
V The SSS, Philhealth and EC contributions
shall be remitted by the employer on or
before the 10th day of the month following
the applicable month.